New Product Research Development – 4 Steps Procedure for the Companies

The business world is never static. The market is subject to constant change and limited marketing opportunities encompassing their own life. Companies planning to develop have to select their own ways to do so. There are two alternatives – either sell new products to the existing customers or look for new customers for selling the existing products. What do the companies do in real practice? Companies try to develop new products for the existing customers.

Creating new markets for an existing product need a comprehensive new product development research to acquire the right result. The costs of acquiring new customers are the key reason that makes the life of business professionals more difficult. Research has proved that cost of creating new customer base is 7 to 10 times more than selling a product to the existing customers. Hence, it is better and cheaper to generate new products for the existing customers than conquer a new market.

Now, the question is why are the companies reluctant in taking this step? Partially because the companies do not like to dilute their own brands with that of others, and partly because they do not know the systematic process of developing new products. New products development involves 4 stages. They are –

  • Talking to customers
  • Finding their needs
  • Analyzing different ways to act
  • Doing it

How to develop a new product for the customers?

The product, which customer ultimately purchases, is the joint creation of an individual from the company and an individual from the customers’ side. However, companies should adopt more systematic method. For this, companies must make a mixture of diverse kinds of customers – for instance, 2 who do not have much knowledge, 2 adventurous and 2 large consumers. Give each of them a call and ask them to give their views on how to improve your company’s services and products.

Besides calling the customers, professionals can also visit them in person and pick ideas. Visiting them physically will give certain ideas, which remote communication cannot give. After talking to the customers, make a checklist covering the items companies must focus. This will sort out the areas about which business professionals should discuss with the customers. In the list, check whether there is anything in common and then sort out things according to some categories.

After that, shortlist the contact details and information about the customers and analyze their needs. Once the companies get to know how the customers use their products, they can discuss ways of developing them. Reaping the greatest benefit from the existing customer helps companies to clarify their needs and save a fortune while stepping new market areas unknown to them.

Thus, new product development research indicates that companies or businesses be interactive with the customers, know their exact needs and wants and then do the task in the like manner. In other words, the methodical approach of the companies is acceptable. This will help the audience know what a company can serve their needs.

New Product Development

New product development is one of the most important components of product policy and product management. Product lines and products are appraise and are positioned effectively. Brand decisions are taken wisely. For a higher level of growth, a firm has to look beyond its existing products. A progressive firm has to consider new product development as a cardinal element of its product policy.

Innovation is the essence of all growth. This is especially true in marketing. In an age of technological advancements, change is a natural outcome — change in food habits, change in expectations and requirements. Any business has to be vigilant to these changes taking place in its environment. People always seek better products, greater convenience, newer fashion and more value for money.

A business firm has to respond to these dynamic requirements of its clientele and these responses take the shape of new products and new services. Through such a response, the firm reaps a good deal of benefits. New products become necessary from the profit angle too. Products that are already established often have their limitations in enhancing the profit level of the firm. Profits from products decline as they reach the maturity stage of their life cycle. Thus, it is necessary for business firms to bring in new products to replace old, declining and losing products.

New products become part and parcel of the growth requirements of the firm and in many cases, new profits come to the firm only through new products. New products can be broadly classified into two groups: new products arising out of technological innovations and new products arising out of marketing oriented modifications. The first group involves innovations leading to intrinsically new products with a new functional utility behind them. The second group involves mere marketing oriented innovations in existing products; it gives rise to new versions of the existing products.

Idea Assessment Ensures Positive Performance Of Your New Product

Are you a product manufacturer, coming up with a new product in the market? Do you have any concerns pertaining to the acceptance of your product among your target audience?Or else, do you already have a product running into the market, and that product is not doing well as per your expectations? Do you want to increase the recognition and performance of your product?

If yes is your answer to any of the questions above, then you need to carry out an assessment for your business (product) idea, and in this multifaceted task, an experienced team of industrial designers and market researchers will assist you.

Did you know, ‘about 76% companies use multidisciplinary teams to seek ideas and suggestions to develop new products?‘ So was studied and published by the Product Development and Management Association (USA) in a journal in the year 1993, and the research happened in the 80s.

It was the scenario of then, the situations in present time have changed, unquestionably. The frequency at which business leaders are launching their products and how the expectations of consumers have skyrocketed, it has become of utmost importance for the products to be foolproof. If not, they hold very high chances for getting denied by the intelligent modern consumers.

For entrepreneurs, homework and hard work are a crucial exercise before they circulate a new product into the market. Similarly, if a product is not doing well as estimated, then also forward-looking entrepreneurs will need to do some coursework to turn it into a success.

By partnering with a product idea assessment team, you can solve this mind-boggling puzzle and create a happy story of your product’s journey. A new product assessment team works with your organizational squad, including the product manager, the conceptualizers, and a few members of the management board, and others.

This cooperative team initiates a series of progressive evaluations to find the best way out. We will be talking about new product assessments done by this collaborative team in the later section, but before that, let us have a look at the activities that businesses usually execute for the development of a new product –

  • Searching possible concepts or ideas of product development
  • Screening the most suitable concept
  • Testing the picked idea
  • Business analysis
  • Development
  • Product testing, sample distribution
  • Defining the cost
  • Seeking approval, license, and patent
  • And, launching the product into the market

These steps are taken by almost every organization, before the product launch. In a consumer-centric arcade, if you want to taste the cup of success, your product needs to have an edge from your competitors’ products.

Here are the tasks that product idea assessment team carries out while working with you –

  • Product feasibility
  • Assessment of Intellectual Property
  • Strategic planning to find flaws in the marketing plan and to drive success
  • Commercialization options (If you have a new product idea.)
  • Funding options (Again, it is for those instances when you have a new product idea.)

The team focuses on procedures that are based on thorough calculations. These evaluations help a business launch and popularize its newly-launched product, while taking on the market competition, and meeting the expectations of the consumers.